tv [untitled] June 8, 2013 4:00pm-4:31pm PDT
with the recommendations or maybe it's something we need to take up afterwards. >> i wanted to thank the budget analyst for a thorough and timely review of the project and we agree with all of their recommendations, the city attorney has prepared -- proposed the sheet to reflect those changes and we're working on underlining changes to the term sheet as well. >> but in terms of approval state, we have amendments then? >> you do have amendments. i gave copies to the clerk and for each of you to reflect the budget. >> thank you. speaking of, mr. rose. we have a budget analyst report. >> mr. chairman, members of the committee on page 31 of our report, we state that for city would invest $28 million in
entitlement in development cost and receive a return on their investment equal to 18 percent annual return on its equity. and then on page 32 of our report -- excuse me, on page 3, page of our report we state that the estimated cost of the water front site project entitlement and horizontal cost return on equity are 240,000,000 umcnvrt_digit-dollar_nodecimal and that's shown on table four on page 28 of our report. and funds to pay this cost is bond proceeds, ifd tax increments and the 20th street parcel and that's on table 5 on page 29 of
our report. on page 37 of our report in table 9, we show the estimated annual tax revenue to this city are $28,027,000. the revenues to this city are $91,154,000. on page 40 of our report the proposed sheet finance entitlement and infrastructure at the water front which support doesn't have sufficient funds to finance at the development. an exchange for finances up to $2.16 million and the entitlement and infrastructure at the water front site and the city would receive $23.73 million from the 18 percent
developer return on equity as well as 45 percent of proceeds from ground leases at the water front site. and the ports contribution is currently estimated at 2 hundred 40 million 6 hundred $240,645,147. so on the bottom of page 41 we have found and conclude that the proposed water front site project is fiscally feasible under chapter 19 of the administrative code with the exception with financing the parking. we have $98.4 million. our recommendations are on page 42, supervisors it has just been stated, the budget analyst recommendations have been incorporated into the proposed legislation. so i will not read the
recommendations on page 42. and given that those recommendations have beenen koerp rated we recognize that you include the resolutions. >> any questions for mr. rose. >> a quick question. there's a funding gap for the facilities and the creative zone, how do you reconcile that with overall financial feesability for the project. >> we have stated that we're recommending approval of the financial fees ability and perhaps we didn't use the word contingent on that gap. in other words we're pointing out to the board there's a gap but we also state supervisor that the -- your finding of financial feesability simply enables the environmental impact to proceed so from that
standpoint we believe that we are correct in saying it's financially feasable and that needs to come back to you and be approved by the board of supervisors. >> thank you. >> any other questions or comments. we'll open it up for public comment. i do have cards from michael and taren woods. anyone else please step forward and line up on the side there. thank you very much. >> one moment. i'm having push
button problems. >> thank you supervisor, tim collin on behalf of the san francisco housing coalition. we support this project. what we've seen, it's evolving and we think it's a great use and we open to see it accelerate in our water front and have very maniment in the north and the south. we think this is a gym of a location and this is not the time or place to go timid. we're encouraged to see more housing is being added to the site. it didn't originally include that. and the affordable crisis becomes clear, we're not clear that 950 units is an add quit response. we like to see the extend possible, flexible zoning
incorporated into it and not a single parking space that can't be justified reasonably. we think this is a terrific process and hope you'll approve the term sheet immediately. >> next speaker. >> supervisor, tim tario, i actually jumped up at the last item but didn't get up here in time. i'm going to do something a little unexpected and praise bailly. when it was finally approved, i thought a vehicle by the interest -- that was an about reason we have i am had for a second term and i view the failure to replicate that. you have a simpler situation here. you have -- instead of multiple
developers, you have a single developer and you have the most responsible developers around. i think their performance at 835 market indicates and we ask you to approve this term sheet. >> thank you. next speaker please. >> good afternoon. i'm rodriguez and representing the brother hood of electrical workers local six. we're in support of this. pier 70 has been a neglected part of the water front for a long time. it will bring a sense of pride to the citizens of san francisco and will allow people from all over the nation to enjoy a piece of our history. this is an opportunity for us to beauty fie the water front. thank you. >> thank you very much. next speaker, please. >> good afternoon.
supervisors, woods, cochair of the chairperson advisory group. you have an e-mail from toby where she talked about how we feel about project has in line and moving forward with the vision that we had under the pier 70 master plan. we've worked on this pier 70 for 13 years. we started out as the pier 70 advisory group, we helped the master plan. and we feel our city has done a good job with the port and moving that vision forward, we're very pleased to see the residential component added to activate the site. it's going to be a very complicate the and very expensive project and it's going to take a long time to
come to few igs. we ask you to approve the term sheet so we can go to the next step. >> next speaker, please. thank you. >> good morning supervisors. i'm with bright line defense in support the item moving forward today. i wanted to comment that excellent hiring commitment have been made on be after of the developer four city which is a great partner and it's a continuation of good work force developments in terms of putting low income communities back to work and particularly neighborhoods in need and looking at this project we believe we can continue to work along side for a community, community groups, trades and other folk in order to move this project forward and make it a great project for all. thank you. >> thank you very much. next speaker please. >> good afternoon supervisors, danny. i know you want to get out of ear and we support this project . it's going to do
wonders for the water front. >> any other members wish to comment on this item. okay. public comment is closed. colleagues we have a term sheet in front of us and an amendments that we have suggested by mr. rose. if i other comments or questions, could i have a motion to accept these potions. we can do so without opposition and to approve the underline term sheet as amended and we can do so without opposition too. mr. clark call item number 12. yeeresolution approving an emergency public work contract for the public utilities
commission under administrative code, section 6.60, to replace the water and sewer pipelines in the vicinity of 15th avenue and wawona street with a contract amount not to exceed $1,450,000. >> okay. thank you. our pc talk on this item. >> assistant gentlemen manager and supervisors, this is looking for your approval of the emergency declaration and contract team for the 15th and water break. i was here last week on the claims process we're try to go through here and we're trying to get out of the neighborhood and we did work already and water work and sewer lines. we gave the paving specks to three contractors yesterday and we expect bids from them so we can get the best bid out of that and get the paving work a week from monday. so you do have room for a little process to get good deals for the city even when it's an emergency when you're doing work like
this. >> what's your approval. >> you're able to bid it out? >> yeah. >> okay. >> anymore questions. >> no. >> thank you very much. >> we do not have a budget analyst so we'll open it up to public comment. anybody wish to publicly comment on item 1. public comment is closed. >> mr. chairman pay we add the language concerning the language providing a copy of the contract once it's approved. >> absolutely. we'll make an amendment to this item to require the pc and once the contract is approved to submit it to the clerk of the committee. >> i'll move that. >> we can move that motion. we can do that as well. all right. thank you mr. clerk. can you call item number 13.
resolution approving professional services agreement, airport contract 9185.9, program management support services for the san francisco international airport, terminal 1/boarding area b redevelopment program between t1 partners, a joint venture of parsons transportation group, inc., the allen group, llc, and epc consultants, inc., and the city and county of san francisco, acting by and through its airport commission, in the not to exceed amount of $4,453,178 for the first year of services; this is a multi-year, multi-phased program with an estimated total contract value in the not to exceed amount of $32,000,000 pursuant to charter, section 9.118(b). (airport commission) >> thank you very much. our frequent flier, here. >> good afternoon chair farrell. cathy wide ner with the san francisco airport. the airport is seeking your approval for service project for pc parson -- excuse me, partner. it's a transportation group and the alan group and this will have support services for the terminal one area,
redevelopment plan. which is known as the t-1 program. it's for a total of $32 million. the proposed contract is for one year with a first year payment not to exceed $4.5 million and carries a 9 one year option to extend the contact for a ten year term. the terminal one program is a renovation of a 50 year old terminal and boarding area which has phased over ten years. the project will provide for the dem mrigs and complete replacement of the terminal building envelope as well as the construction of a temporary boarding area while a new boarding area is built. consolidation of passenger check points and airline counters and concession space. it includes the consolidation of the baggage and screen in
terminal one. it's scheduled and implementations for each phase of the terminal one project. the partners will develop the cost estimates and budgets and provide quality assurance and control as well as the management of the consolidation of the pan age handling and the passenger handling. the agreement does contain tax and timelines to be evaluated before if i option is exercised. and the contract is a result of a competitive rfq partner with achieving the highest score. the budget would recommend approval and i'll be happy to answer any questions. >> supervisor mar thank you. >> the budget is shown in table
two. and we do recommend you approve this resolution. >> through mr. rose. >> we'll open up to public comment. anybody who wishes to comment. public comment is closed. >> i'll move approval. >> okay. >> we have a motion to approval and we can do so without opposition. mr. clerk can you call item number 14. resolution authorizing a 14.5 month extension of the lease with sfoc, llc, of 9,800 sq. ft. at 711 van ness avenue, for a total lease term of thirty-five months with a base rent of $17,966.67 per month, for the department of emergency management and the office of the assessor-recorder. (real estate department) >> all right. welcome back. >> thank you and now it's good afternoon chair farrell. director of real-estate. >> that's sad. >> sorry to remind you of that.
in july of 2012 the board approved a lease for this location, 7-eleven for the department of emergency development. total premises is 9,800 square feet. this was to terminate in april of 2014. the rate was fixed at $22 per square foot. that's fully service. that's our total cost and that's 56 cents a square foot or less to occupy our own property. so needless to say, this is a very favorable rate. we're not seeking an extension of this lease until june 30th, 2015 or until sooner terminated by ownership. ownership is in the process of converting this property to a dental property for the entirety of the office that sits on the first level so
when they're ready to go forward, they're going to give us a six month notice to vacate. the rate remains the same. there's no increase in the rate through our occupancy. the areas security initiative grant funds do provide 73 percent of the cost of our occupancy for the security initiative to occupy the space that's 7,000 square feet of the space. dem has funs to cover the other 27 percent and the assessor recorders office is occupying 2800 square feet of this space, that's for 13 employees and they're working on the backlog of assessment appeals. so this fits in well with their work program. happy to answer any questions you have and i'm joined by
colleagues of the department if you have program questions. >> supervisor mar. >> okay. we have a budget analyst report. >> supervisor mar, on page 4, we point out that the total rent for the amended lease agreement is 6 hundred $670,833 and that's over the extended term of the lease. that's in table 2 as i state on page 55. we recommend that you do approve this resolution. >> okay. thank you mr. rose. supervisor mar, any questions. okay. we'll open up to public comment. no public comment. public comment is closed. >> approval. >> we have a motion to approve and we can do so without approval. >> please call item 15. >> item number 15, resolution approving the market tax credit
program by the development. breedresolution approving the continuation of the new market tax credit program, established by the former redevelopment agency of the city and county of san francisco, revisions to the bylaws of the san francisco community investment fund, and contributions of city staff under a cooperative agreement, and authorizing the san francisco community investment fund to enter into contracts to implement new market tax credit program at no cost to the city's general fund >> we have mr. strong and mr. say here. whoever wants to take the mic. >> i'll step in. brian strong with the capital planning program in the city of minnesota office. this is the rare opportunities i get to come and talk about something that doesn't involve the capital plan so i appreciate that. i'll try to be quick. this is a program that was started three years ago really by the redevelopment agency. and sort of a partner ship with the city and it was to fill a
gap to provide tax for low incomes through the investment fund. this, you know, we went to the redevelopment agency and get it started and received a significant amount of allocation. now we're moving forward with providing those funds. and we've actually have two committed projects that i'm going to talk about briefly. we have -- two projects that have received funding and four projects that have committed funding so we're pushing these to the tax credits out the admire and door. what we found is that in creating this what we call this, there's a demand for these and we're really filling an important role here. so the two projects that have been funded, at the received tax credits and these are federal tax credits that the projects can take advantage
of to reduce the capital cost. >> can you explain more background of the accomplishment and how these funds flow. >> sure. i'll go to the next slide that gives you more background on it. these are federal dollars, federal tax dollars and what we're -- through -- the developers and banks want to be able to fund and support using. these tax dollars are able to be accessed by these projects which we sort of would approve. we have to become an authorizationing agency to approve these tax credits. these tax credits reduce interest capital costs and are able to go toward the project. in return they need to sort of commit to certain community, they need to make certain community commitments that we he would followup on.
7 years and it's 7 years but i'll get to a little bit of that. so that's the background on how it works. we funded two projects, college track, it close in 2011 and it was $8.7 million in tax credit allocation that we gave them. that results in $2 million or so dollars once you take the credit off, it's $2 million in project cost. the total project for that one was $8.6 million and again this is a very successful project serving 500 students. another one that closed recently, it was a $52 million project and we provided $15 million in the new market tax credit toward that project. so the background is developed by the redevelopment agency and
now that they have been dissolved we need to move it to the city. and that's important because we have commitments that have been made to some of these projects where we have follow through on them. so the san francisco jazz made a commitment to provide community benefits for 7 years, we have to verify that's going to april. so what we're asking you today is to continue the program. there's amended and bylaws that's in the packet and to verify the cooperative agreement that have been made so we can go forward. to skip to program goals, it's low cost capital to low income communities. we have creates for ourselves here. community benefits, our jobs, local businesses, these are low income businesses, promote
affordable housing. catalyzed development in underserved areas across the city. and we'll show you a map. actually here you get a sense. the map on the right, the areas in the red are the ones that are actually eligible for these types of tax credits. so projects will need to be located within those red areas or they need to target populations that would be -- that are low income that's in these areas so you can -- you have two ways that your project can be eligible. an over view, we received two $80 million through allocations for the two applications and they want to see projects that's going to move forward. the federal government says if they're going to give us these moneys, we want it to be spent. so we got college track and access jazz that's moving forward.
those are the first two projects and we got $56 million in projects that's committed and including the girls and boys club for $15 million and the theater for 15 million. and the rendrar hotel and the produce market and the next step is once we feel we've got a number of these projects committed to, we're going to go back and ask for additional allocation. >> sorry. the city is facing a [inaudible]. we're not taking any financial obligations on these tax credits. this is not a city obligation, it's just the investment fund itself? >> yep. if you go to the next slide, this mentions the considerations. we're not a party to the transactions. the obligation is to maintain that
-- make sure they're maintaining their status and there's auditing and reporting obligations we have to make as well. and then we defy the tax creditor for loss. if they lose their cdc credit, there's the ability to serve to the investment fund and we'll capture it. so we have those opportunities. the idea is this is referred to as a patient loan. it is something that once the developer and the project sponsors committed to building this, they're going to be obligated to continue these things. they can't take the money and turn around and decide we didn't want to do a girls and a boys club. we wanted to do something else and change it. for project sponsors, the real benefit is it lowers the cost of capitol. this closes some of those
important gaps. it's more flexible as far as underwriting than going through your regular financing. once the tax credits played itself out over 7 years, the debt is forgiven because there's no longer a benefit to the bank or to the bank as far as the tax credit goes. so i do want to mention, anthony has a bond and nadia are here to answer questions and we have the city's attorney office who have been working with this and address any detailed questions you may have. >> okay. thank you very much. supervisor mar, any questions. >> what's the process to collect a project for this benefit and i'm strongly supportive of continuing this post redevelopment, but what's the process, like how do you choose a boys and girls club,
renmar and the produce market. >> there's an application process and we have an advisory board and they bring it to the advisory board that have representation from the board and there's criterias that we expect them to meet. once they go to the advisories board, they come to the full board and we look at it and make a recommendation. >> so it doesn't necessarily have to be in the red areas if it's going to serve distress individuals or communities, poverty, medium family income base and then low income target populations. >> yep. you got it. >> okay. thank you mr. strong. is there anyone else that wants to present? okay. and we do not have